United Bank Limited (UBL) posts 42pc decline in profits

KARACHI: United Bank Limited (UBL) has announced a net profit of Rs15.049 billion for the year December 31, 2018, which is 42 percent lower than the profit of Rs25.95 billion recorded in the previous year.
The earnings per share (EPS) for the year 2018 clocked in at Rs12.65 as against Rs21.2 last year. The company also declared a final cash dividend of Rs3.0/share, which is in addition to interim dividend of Rs8.0/share already paid to the shareholders.
“The earnings arrived above our expectation mainly due to one-off reversal of Rs2.6 billion booked by the bank during fourth quarter of 2018, likely emanating from downward revision in pension liability,” Muhammad Nabeel at Pearl Securities said.
United Bank Limited (UBL) total net interest income for 2018 clocked in at Rs58.24 billion, up 0.26 percent, as compared with the net interest income of Rs58.092 billion in 2017.
Bank’s non-interest income for the year under review clocked in at Rs26.64 billion, up 9.67 percent, as against Rs24.29 billion in 2017.
Syed Danyal at Topline Securities has flagged further non-performing loans (NPL) creation on international book, lower than expected advances growth, delay in hike in interest rates, and deterioration of Pakistan macros as key risks for United Bank Limited (UBL).[the_ad id="31605"]